Tag Archives: revenue

Dell Stock Jumps as Q3 Earnings Beat Expectations Despite Revenue Miss

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TLDR Dell reported Q3 earnings of $2. 59 per share, beating estimates, but revenue of $27. 01 billion missed expectations Company increased AI server revenue forecast to $25 billion for fiscal 2026, up from $20 billion Q4 revenue guidance of $31. 5 billion exceeded analyst estimates of $27. 59 billion by nearly $4 billion AI server backlog grew to $18. 4 billion with $12. 3 billion in new orders David Kennedy appointed permanent CFO as Dell raises full-year revenue outlook Dell Technologies posted mixed third-quarter results that left investors focused on the future rather than the present. The company missed revenue targets but delivered a forecast that sent shares climbing 5% in extended trading. Revenue reached $27. 01 billion, falling short of the $27. 13 billion analysts expected. Earnings per share of $2. 59 beat the $2. 47 consensus estimate. Net income climbed to $1. 54 billion from $1. 17 billion a year earlier. Dell Technologies Inc., DELL The real story emerged in Dell’s guidance. The company expects fourth-quarter revenue of roughly $31. 5 billion. That’s nearly $4 billion above Wall Street’s $27. 59 billion estimate. AI Infrastructure Drives Growth Dell’s AI server business is firing on all cylinders. The company now projects $25 billion in AI server revenue for fiscal 2026. That’s a $5 billion increase from its previous $20 billion forecast. Third-quarter AI server shipments hit $5. 6 billion. The backlog swelled to $18. 4 billion, powered by $12. 3 billion in fresh orders. Dell expects to move $9. 4 billion worth of AI servers in Q4 alone. Major customers include xAI, CoreWeave, the U. S. Department of Energy, and G42. A November deal with Iren to supply Nvidia GB300 systems for Microsoft wasn’t included in the Q4 forecast. Infrastructure Solutions Group revenue reached $14. 11 billion, matching estimates. Server and networking sales jumped 37% year-over-year to $10. 1 billion. PC Business Continues Decline The traditional computer business tells a different story. Client Solutions Group revenue of $12. 48 billion grew just 3% and missed the $12. 65 billion estimate. Commercial PC and laptop sales dropped 7% from last year. Consumers and businesses aren’t rushing to upgrade existing machines. The weak demand persists across the personal computer market. Cost Pressures Mount Rising memory chip prices threaten margins. DRAM and NAND costs are climbing faster than Chief Operating Officer Jeff Clarke has ever seen. “We’re in a very unique time. We have not seen costs move at the rate we’ve seen,” Clarke told analysts. The company may need to pass some costs to customers but will try to minimize the impact. Strong demand gives Dell pricing leverage. When orders exceed supply, sellers gain negotiating power. Dell appointed David Kennedy as permanent CFO. The company raised full-year revenue guidance to between $111. 2 billion and $112. 2 billion. Previous expectations ranged from $105 billion to $109 billion. The company returned $1. 6 billion to shareholders through buybacks and dividends. Fourth-quarter earnings per share are forecast at $3. 50, above the $3. 21 estimate.
https://blockonomi.com/dell-stock-jumps-as-q3-earnings-beat-expectations-despite-revenue-miss/

Analog Devices (ADI) Stock: Chipmaker Crushes Earnings as Recovery Takes Hold

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TLDR Analog Devices reported Q4 earnings of $2. 26 per share, beating analyst estimates of $2. 23 by $0. 03 Revenue reached $3. 08 billion for the quarter, surpassing the consensus estimate of $3. 02 billion The company issued strong Q1 2026 guidance with expected EPS of $2. 19-$2. 39 and revenue of $3. 00-$3. 20 billion Industrial segment revenue jumped 34% year-over-year to $1. 43 billion, representing nearly half of total sales Communications segment posted $389. 8 million in revenue, exceeding analyst expectations of $380. 60 million Analog Devices delivered better-than-expected results for its fourth quarter. The chipmaker reported earnings of $2. 26 per share. That figure topped analyst estimates of $2. 23 by three cents. Revenue came in at $3. 08 billion versus the consensus estimate of $3. 02 billion. The Wilmington, Massachusetts-based company didn’t stop there. Management issued guidance that exceeded Wall Street expectations. Analog Devices, Inc., ADI For Q1 2026, Analog Devices expects earnings between $2. 19 and $2. 39 per share. Analysts had predicted $2. 18 per share. Revenue guidance landed at $3. 1 billion, give or take $100 million. That beats the analyst estimate of $2. 96 billion. The stock closed at $239. 40 before the earnings report. Over the past year, shares climbed 9. 29%. Business Segments Show Recovery The industrial segment proved to be the star performer. Revenue in this division hit $1. 43 billion, up 34% from the prior year. This segment accounts for roughly half of Analog Devices’ total sales. Customers ramped up spending on factory automation and defense systems. Digital healthcare and energy infrastructure investments also drove growth. Analysts had expected $1. 44 billion from the industrial segment. The communications division posted solid results too. Revenue reached $389. 8 million for the quarter. That beat analyst expectations of $380. 60 million. This segment makes equipment for wireless network radio signal transmission. CFO Richard Puccio noted the company saw “notable strength” in the communications market. Healthy booking trends continued throughout the fourth quarter. Management Commentary on Market Conditions Puccio addressed the current business environment during the earnings release. He acknowledged that macro uncertainty could shape fiscal 2026. However, he expressed confidence in the company’s position. “We believe we are well positioned to continue capitalizing on the ongoing cyclical recovery,” Puccio stated. The chipmaker has weathered a prolonged demand slump. Now the company is seeing recovery across multiple business sectors. Enterprises are loosening their budgets again. Infrastructure expansion remains a priority for many customers. Tariff uncertainties persist in the market. But demand has remained resilient despite these concerns. Growth in the industrial sector continued during Q4. The communications market showed particular strength according to management. In the past 90 days, Analog Devices received 25 positive EPS revisions. Only one negative revision came through during that period.
https://blockonomi.com/analog-devices-adi-stock-chipmaker-crushes-earnings-as-recovery-takes-hold/

Super Micro (SMCI) Stock Tumbles as Company Misses Earnings

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Super Micro Computer Misses Q1 Estimates But Raises Outlook Amid AI Server Boom

Super Micro Computer (NASDAQ: SMCI) reported disappointing first-quarter results, missing analyst estimates on both earnings and revenue. Shares dropped more than 9% in premarket trading Wednesday following the announcement.

**Quarterly Results Fall Short**
The AI server maker posted earnings of $0.35 per share, falling short of the $0.40 per share expected by analysts. Revenue came in at $5.02 billion—significantly below the projected $6 billion. This miss occurred despite Super Micro issuing preliminary results last month to prepare investors.

Year-over-year, revenue declined 15% from $5.94 billion. Net income plunged by more than half to $168.3 million, or $0.26 per share, compared with $424.3 million in the prior year period.

**Revenue Delay Due to Customer Design Changes**
Super Micro attributed the shortfall to configuration changes requested by a high-volume customer. These design adjustments for GPU racks pushed approximately $1.5 billion in expected first-quarter revenue into the second quarter. CEO Charles Liang explained, “The delays were largely caused by the complexity of these new graphics processing unit racks, which require intricate integration, testing, and validation.”

**Challenges in AI Server Margins**
While Super Micro has benefited from the AI infrastructure boom—bolstered by its partnership with Nvidia and access to the new Blackwell Ultra GPU series—margin concerns remain. J.P. Morgan analysts noted that profit opportunities have lagged behind revenue growth in the AI compute space, with server makers sacrificing margins to secure high-value deals. Susquehanna analysts echoed these concerns, pointing out that deep price discounts to secure GB300 orders and an ongoing pursuit of lower-margin business have strained Super Micro’s financial metrics as competition intensifies.

**Raised Guidance Surprises Wall Street**
Despite the Q1 miss, Super Micro raised its outlook for upcoming periods. The company now expects second-quarter revenue of $10 to $11 billion, above the $7.83 billion analyst consensus. Full-year revenue guidance was also increased to at least $36 billion, up from the previous forecast of $33 billion.

**Stock Performance and Valuation**
Super Micro shares have gained nearly 56% year-to-date. The company currently trades at a price-to-earnings ratio of 16.94, compared to 9.75 for Hewlett Packard Enterprise and 14.11 for Dell Technologies.

**Looking Ahead**
The company’s ability to deliver on its raised guidance will be closely watched, particularly as the competitive and margin pressures in the AI server market remain intense. Super Micro’s partnership with Nvidia and its position at the forefront of next-generation GPU infrastructure leave it well-placed for future growth, but investors are watching to see if profitability can catch up with revenue gains.

*Super Micro Computer issued preliminary earnings about two weeks before this report, warning that quarterly revenue would drop to $5 billion—down from an earlier guidance of $6 to $7 billion. With Q1 numbers now out, attention shifts to execution in the coming quarters and whether Super Micro can balance growth with profitability in a rapidly evolving market.*
https://coincentral.com/super-micro-smci-stock-tumbles-as-company-misses-earnings/